The Securities and Exchange Commission has unveiled plans to enhance the licensing, registration, and screening procedures for digital and virtual asset service providers.
The SEC aims to strengthen market integrity and protect investors by preventing individuals with criminal backgrounds from participating as operators in the capital market.
The new guidelines will complement the existing regulatory framework, reinforcing the SEC’s commitment to robust market oversight. The circular also references previous actions, including the classification of digital assets in September 2020 and the guidelines issued in May 2022.
These provisions cover general requirements for VASPs, issuance of digital assets as securities, operation of digital assets offering platforms, digital assets exchanges, and digital asset custodians.
In April 2023, the SEC introduced procedures for targeted financial sanctions on individuals and entities linked to terrorist activities. Additionally, the SEC unveiled a new Anti-Money Laundering, Countering the Financing of Terrorism, and Countering Proliferation Financing onboarding manual.
This manual, tailored for licensing, registration, and ongoing screening of beneficial owners of VASPs, aims to prevent individuals with criminal backgrounds from registering as operators in the capital market.
The SEC is actively incorporating additional comments from engagements with the Central Bank of Nigeria into the rules, which will undergo public exposure for further comments before final approval.
